The iconic Chevrolet Silverado is one of America’s most popular pick-up trucks, but it may become a victim of Donald Trump’s trade war. The vehicle relies heavily on complex international and interconnected automotive supply chains, making it vulnerable to tariffs imposed by the US president.
According to data compiled by Export Genius, key components in Silverados are highly dependent on parts imported from Mexico. If tariffs become permanent, GM would need to consider relocating plants or reducing production to avoid increased costs.
Industry experts warn that a shift in manufacturing from Mexico to the US would be costly and time-consuming, while the higher price of labor would raise production costs. Ford’s CEO Jim Farley has warned that billions of dollars in industry profits could be lost if tariffs persist.
Willebaldo Gómez Zuppa, an economics professor at the National Autonomous University of Mexico, argues that tariffs would increase vehicle prices, hurting demand and potentially exacerbating immigration issues. The threat of tariffs has already affected labor negotiations at GM’s Silao plant, where workers were rebuffed in a proposal to raise wages.
The US automotive industry is bracing for the impact of Trump’s trade policies, which could disrupt global supply chains and affect consumer prices.
Source: https://www.ft.com/content/fb55f297-7e29-4215-a67f-4217e1a026d6